Systems and methods for preparing for an audit by recording corporate governance information on an immutable blockchain

Abstract

The present disclosure describes systems and methods for storing pertinent company information on an immutable blockchain. Preferred embodiments disclose systems and methods of preparing for an audit by recording corporate governance information on an immutable blockchain. The recorded information, which cannot be subsequently backdated or manipulated, provides auditors compliant and accurate information, which streamlines the audit and reduces costs.

What is claimed: 
     
       1. A computer-implemented method of preparing for an external audit by a company by recording corporate governance information on an immutable blockchain, the method comprising:
 in real time, with software executing on a computer system:
 drafting and recording general corporate matters; 
 encrypting at least a portion of the recording of the general corporate matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with a decryption key; 
 storing the encrypted data of the general corporate matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 drafting and recording financial and accounting matters; 
 encrypting at least a portion of the recording of the financial and accounting matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with the decryption key; 
 storing the encrypted data of the financial and accounting matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 drafting and recording tax filing maters; 
 encrypting at least a portion of the recording of the tax filing matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with the decryption key; 
 storing the encrypted data of the tax filing matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 creating a list of certificate holders that have access to the decryption key; and 
 designating at least one certificate holder who has access to the decryption key on the immutable blockchain. 
 
 
     
     
       2. The method of  claim 1 , wherein the company is privately held. 
     
     
       3. The method of  claim 1 , wherein the company is publicly held. 
     
     
       4. The method of  claim 1 , wherein the general corporate matters are drafted after creation or after a material change. 
     
     
       5. The method of  claim 1 , wherein the financial and accounting matters are drafted and recorded at least every 30 days. 
     
     
       6. The method of  claim 1 , wherein the financial and accounting matters are drafted and recorded at least every 90 days. 
     
     
       7. The method of  claim 1 , wherein the tax filing matters are drafted and recorded within the time requirements specified by the tax deadlines or after a material change. 
     
     
       8. The method of  claim 3 , further comprising, drafting, completing, and recording SEC filing matters by the publicly traded company within the time requirements specified by the SEC deadlines or after a material change. 
     
     
       9. The method of  claim 8 , further comprising encrypting at least a portion of the SEC filing matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with the decryption key. 
     
     
       10. The method of  claim 9 , further comprising storing the encrypted data of the SEC filing matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation. 
     
     
       11. The method of  claim 10 , wherein at least one certificate holder is an SEC auditor. 
     
     
       12. A computer-implemented method of preparing for an external audit by a privately held company by recording corporate governance information on an immutable blockchain, the method comprising:
 in real time, with software executing on a computer system:
 drafting and recording general corporate matters; 
 encrypting at least a portion of the recording of the general corporate matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with a decryption key; 
 storing the encrypted data of the general corporate matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 drafting and recording financial and accounting matters; 
 encrypting at least a portion of the recording of the financial and accounting matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with the decryption key; 
 storing the encrypted data of the financial and accounting matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 drafting and recording tax filing maters; 
 encrypting at least a portion of the recording of the tax filing matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with the decryption key; 
 storing the encrypted data of the tax filing matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 creating a list of certificate holders that have access to the decryption key; and 
 designating at least one auditor as a certificate holder who has access to the decryption key on the immutable blockchain. 
 
 
     
     
       13. The method of  claim 12 , wherein the general corporate matters are drafted after creation or after a material change. 
     
     
       14. The method of  claim 12 , wherein the financial and accounting matters are drafted and recorded at least every 30 days. 
     
     
       15. The method of  claim 12 , wherein the financial and accounting matters are drafted and recorded at least every 90 days. 
     
     
       16. The method of  claim 12 , wherein the tax filing matters are drafted and recorded within the time requirements specified by the tax deadlines or after a material change. 
     
     
       17. A computer-implemented method of preparing for an external audit by a privately held company by recording corporate governance information on an immutable blockchain, the method comprising:
 in real time, with software executing on a computer system:
 drafting and recording general corporate matters after creation or after a material change; 
 encrypting at least a portion of the recording of the general corporate matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with a decryption key; 
 storing the encrypted data of the general corporate matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 drafting and recording financial and accounting matters at least every 30 days; 
 encrypting at least a portion of the recording of the financial and accounting matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with the decryption key; 
 storing the encrypted data of the financial and accounting matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 drafting and recording tax filing maters within the time requirements specified by the tax deadlines or after a material change; 
 encrypting at least a portion of the recording of the tax filing matters as encrypted data, wherein the at least a portion comprises identifiable information, such that the identifiable information is accessible only with the decryption key; 
 storing the encrypted data of the tax filing matters on a blockchain, such that the recording creates an immutably verifiable record that is time-stamped and that cannot be subject to subsequent data entry manipulation; 
 creating a list of certificate holders that have access to the decryption key; and 
 designating at least one auditor as a certificate holder who has access to the decryption key on the immutable blockchain. 
 
 
     
     
       18. The method of  claim 17 , wherein the recorded general corporate matters comprise at least two of Articles of incorporation;
 Bylaws; 
 Board of Director minutes; 
 Contractual obligations and commitments; 
 Lease agreements—operating or capital; 
 Purchase agreements; 
 Annual corporate filings for state regulatory purposes; 
 Employment agreements or contracts; 
 Consulting agreements or contracts; 
 Litigation matters involving the company; 
 Corporate acquisition agreements or valuation reports; 
 Debt or equity agreements; and 
 A list of company shareholders. 
 
     
     
       19. The method of  claim 17 , wherein the recorded financial and accounting matters comprise at least two of
 Detail trail balance; 
 General ledger; 
 Journal entries not system generated; 
 Draft financial statements; 
 Cash flow and EPS (earnings per share) schedules; 
 Review of internal control and changes 
 Cash accounts—bank statements and reconciliations as of end of period; 
 Prepaid expenses—documentation of additions and period amortization/write-offs; 
 Receivables—documentation for changes from prior period and analysis of collectability; 
 Accounts payable aging; 
 Accrued expenses detail listing; 
 Note payable roll forward schedule with BCF calculation; 
 Note conversion calculations for all transactions during the period; 
 Note agreement for outstanding notes and notes settled; 
 Equity activity; 
 Supporting documents for all shares, options & warrants issued; 
 Valuation of any warrants or options; and 
 Stock Ledger showing number of outstanding shares and listing of shareholders; 
 Explanation for significant changes to revenue steam and expenses; 
 New products or sources of revenue; 
 Changes in supply chain for inventory; and 
 Major customers and vendors. 
 
     
     
       20. The method of  claim 17 , wherein the tax filing matters comprise at least two of
 Annual filings for federal and state tax authorities; 
 Local tax filings—sales tax; and 
 Employment tax filings—quarterly and annual.